Solar energy funding down 24% in 2024

There were also fewer deals.

The solar sector's total corporate funding, including venture capital (VC) funding, public market, and debt financing fell 24% year-on-year in 2024, according to Mercom Capital Group.

In its latest report. Mercom said $26.3b was raised in 157 deals in 2024, down from $34.4b in 161 deals in 2023.

“The market is awaiting clear policy signals from the new administration on the IRA provisions, ITC extensions, and tariff measures before investors come off the sidelines and deal-making can return to healthier levels,” said Raj Prabhu, CEO of Mercom Capital Group.

Global VC and private equity funding in the solar sector in 2024 came to $4.5b in 60 deals, 36% lower than in 2023. There were 14 VC funding deals of $100m or more in 2024.

Public market financing in the solar sector in 2024 totaled $3b, 59% lower than the previous year.

In 2024, announced debt financing decreased 6% to $18.8 billion. Securitisation deals were a key contributor, with a record $5 billion in 16 deals.

M&A activity was 15% lower in 2024 that the previous year, with 82 corporate M&A transactions compared to 96 in 2023.

The number of large-scale solar project acquisitions in 2024 fell to 217, compared to 231 in 2023. The total acquired capacity also dropped to 37.7 GW, a 17% decrease from 45.4 GW the previous year.